The trader buys something when

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He thinks it will increase in price or he can sell it short when he suspects that it will decrease in value in the next few minutes. Let's see all this with a very simple example: Let's imagine that after doing an exhaustive analysis, we believe that the euro will increase its price in the next hours, having a current value of dollars. Therefore, the professional opens a purchase operation and waits until the next day to see what happens. At dawn we realize that it has indeed increased its price and is now worth $ and we immediately close the operation, making a profit of pips.


Now, how much money have we really earned? Everything will Belarus WhatsApp Number depend on the amount of money we have invested at the time , so it can be from , euros to , or more. Key Concepts for Trading in Forex To trade Forex it is essential to understand some basic concepts. Let's look at some of them in detail: Currency pair The main concept that we have to understand is that of a currency pair , which we saw in a general way at the beginning of the article.





To understand it better, we have to look at it as a financial instrument and there we will see two important numbers: the sale price , also known as bid, and the purchase price , called ask. In most cases it is displayed like this:So, there we see that we can buy euro with usd, which is the purchase price and we can sell euro for dollars, which is the sale price. Therefore, if we want to buy euros and trade US dollars, we press the buy button and the broker will immediately borrow part of the funds from the account in which we trade as a kind of insurance.